OPSM 501 Operations Management

OPSM 501 Operations Management

Instructor: Gürhan Kök (gkok@ku.edu.tr)

Office: CAS 132 / (212) 338 1067
Teaching Assistant: Ayşe Çetinel (acetinel18@ku.edu.tr)

Course Description:

Operations management may be defined as the design, operation, and improvement of

the production systems that create value for customers through the firm’s primary
products and services. As this definition suggests, the field of operations management is
not only concerned with manufacturing systems but also with service operations such as
health care, insurance, hotel management, banking, airlines, etc. In short, operations
management studies how organizations actually do things.

All organizations are involved in operations. This course presents the tools, conceptual
frameworks, and technological understanding necessary to understand, manage and
improve operations in today's increasingly challenging and complex business
environment. This course takes a process view of operations management, and is
structured around the understanding and analysis of business processes.

The first part looks at business processes within a firm. Process typologies and their role
in determining a firm’s operations strategy and how it approaches its customers are
established. Basic process vocabulary and notions are developed. Then we delve a bit
deeper into the design and analysis of business processes. The relationships between
process design, process flow performance, and resource needs are explored.

Part two develops understanding of some basic planning and control tools and concepts.
In this part we focus on special processes: industrial processes that go beyond the
boundaries of a single firm, known as supply chains. Supply chains are used to illustrate
planning and control tools and concepts.

Course Objectives

Course Credit: 3 credits

The objective of this course is to help students to develop an overall understanding of the
issues related to the management of operations. The principles that govern operations
will be understood and thus can be applied in different settings. Each operation
environment is unique. No single set of procedures can work well under all conditions.
Therefore, students are expected to learn not what to do about operations problems but
rather how to think about them.

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Textbook and Course Material:

• Cachon, G. and Terwiesch, C. Matching Supply with Demand: An Introduction to

Operations Management, 4th edition,McGrawHill

• Goldratt, E.M. and J. Cox, The Goal, North River Press

• Additional reading material and cases are available in the course pack.

Instruction Methods In order to reach the objectives of this course, we will utilize
lectures, case studies, in-class exercises, and management simulations.

Lectures Class time will be devoted to lectures concerning important concepts and
issues as well as to the analysis and discussion of case studies. Students are expected to
read the assigned materials, and carefully analyzed the cases before coming to class. It is
essential to take an active role in the class discussions. Students are expected to be
present and to participate in all class sessions. Class participation constitutes an
important part of learning in this course. This includes case readings, overall class
conduct and participation, as well as participation to in-class activities. Strong
participation is founded on adequate preparation and active in-class participation. For a
case discussion, this requires a thorough analysis of the case, defining the problems,
identifying and evaluating trade-offs, and preparing a plan of action. For in-class
activities, it requires being present and doing your best in exercises and games.

Case Studies We will study several cases during the course. Each case introduces a
framework or a set of tools and concepts for analyzing operations problems, as well as a
company, and constitutes an important part of the learning from this class. Some of these
cases will be discussed in class and act as a platform for in-class exercises.

Novel The Goal is an operations management novel. Reading it will enable you to better
understand and synthesize topics regarding operations strategy, process flows, batching,
quality, and variability. The reading and discussion of this novel is due Session 6.

Simulations Using eBeer we will simulate basic dynamics of a supply chain. (Session 4)
Global Supply Chain Management simulation will help you experience the complexities
of managing a global supply chain. You will be the manager of a global supply chain for a
mobile phone manufacturer. (Session 7).

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Grading:

Item
Contribution

Midterm exam (In-class) (ind.)

15%
Final exam (Take home) (ind.)
25%

Quizzes (4) (ind.) 12%

Attendance + Participation (ind.) 14%

Privalia (report) (team) 8%

Breakfast at the Paramount (report) (team) 8%
Global Supply Chain Simulation and eBeer
(team/ind.) 10%
participation

Operations strategy and digital

(team) 8%
transformation -report

ACADEMIC HONESTY
Honesty and trust are important to all of us as individuals. Students and faculty adhere to
the following principles of academic honesty at Koç University:

1. Individual accountability for all individual work, written or oral. Copying from others
or providing answers or information, written or oral, to others is cheating. You may discuss
and get help from fellow students about a homework question, but you are expected to
write down the final solution on your own, without copying from someone else’s paper.
Cheating for homework assignments will be punished by zero point for both sides in the
collusion (one who gives the solution as well as one who copies) for a first time.

2. Providing proper acknowledgment of original author. Copying from another student's

paper or from another text without written acknowledgment is plagiarism.

3. Study or project group activity is effective and authorized teamwork. Unauthorized help
from another person or having someone else write one's paper or assignment is collusion.

Cheating, plagiarism, and collusion are serious offenses resulting in disciplinary action.

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STUDENT RIGHTS
KU Home Page -> Koç Student -> Academic Resources -> Student Code of Conduct ->
Student Rights and Responsibilities

ACADEMIC GRIEVANCE PROCEDURE

KU Home Page -> Koç Student -> Academic Resources -> Academic Grievance Procedure

CLASSROOM CODE OF CONDUCT

KU Home Page -> Koç Student -> Academic Resources -> Classroom Code of Conduct

MISCELLANEOUS RULES OF CONDUCT

Attendance Policy: Attendance is not mandatory. However, it will have an influence on
your final grade.

Make-up Policy: There will be no make-up for class participation, including games and
in-class exercises.

Class Participation Grade: Participation in class activities and attendance will be

recorded and will form a basis for the participation grade.

Deadlines: No group projects will be accepted late.

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Friday February 3, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43
Saturday February 4, 2023 OPSM 501 Operations Management 14:00-18:00 SNA A43
Sunday February 5, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43
Friday March 3, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43
Saturday March 4, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43
Sunday March 5, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43
Friday April 7, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43
Saturday April 8, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43
Sunday April 9, 2023 OPSM 501 Operations Management 09:00-13:00 SNA A43

COURSE SCHEDULE

Date Case Quiz

Session Topics

Module: Process Strategy Read : Walmart

Friday Operations as a Competitive vs Amazon
1
Feb 3 Strategy
Introduction to Process Analysis
Module: Process Analysis
Saturday Process and Flow Time Analysis Process
2
Feb 4 Introduction to Variability Analysis -1

Variability& Queueing
Sunday Inventory Management -1
3 Queuing-1
Feb 5 Beer Game (maybe)

Due: Privalia
Module: Supply Chain Mgmt case; Breakfast
Friday
4 Beer Game at the
Mar 3
Paramount

Saturday Inventory Management -2 Read: Zara case

5 Inventory-1
Mar 4

Managing Operational Risks

Sunday Read: Li&Fung
6 Global Supply Chain Simulation
Mar 5 case, Nissan
case

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Friday Midterm
7 Midterm Inventory-2
Apr 7 Global Supply Chain wrap up

Module: Process Improvement

Saturday The Goal Read: The Goal
8 Goal
Apr 8 Lean production, lean enterprise

Read: Disney
Sunday Operations Strategy and Digital Case
9
Apr 9 Transformation: Presentations Due: Team
Presentations
Due:
-- Take-home Final Exam
Apr 24

Session 1

Class Topics Course Introduction

Operations and Strategy
Process Analysis

Readings “Operations-Based Strategy,” California Management

Review, Summer 1998.
Textbook Chapter 2: The Process View of the Organization

Case Walmart Inc. Takes on Amazon.com

Session 2

Class Process Analysis & Intro to Queueing

Topics
Readings Textbook Chapters 3
Understanding the Supply Process: Evaluating Process Capacity

and Chapter 9
Variability and Its Impact on Process Performance: Waiting
Time Problems

Explore the following websites:

Jobshop http://www.youtube.com/watch?v=V-9eMmfThD8
Continuous Flow: Coke bottling plant

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https://youtu.be/yet4zA415B8
https://youtu.be/9Eq4C9ch-vk
Prius plant http://www.youtube.com/watch?v=dHnY5NjxC5c
Volkswagen Plant- Dresden:
https://www.youtube.com/watch?v=nd5WGLWNllA

Session 3

Class Topics Queue Management + Inventory Intro

Readings Queueing
Textbook Chapter 9: Variability and Its Impact on Process
Performance: Waiting Time Problems

Inventory
Textbook Chapters
5, (Batching and Other Flow Interruptions)
14.1, 14.2, 14.3, 14.4, 14.6, 14 .7, (Betting on Uncertain
Demand: the Newsvendor Model)

Supply Chain

Textbook Chapters 19.1 and 19.2. (Supply Chain

Coordination)

“Bullwhip Hits Firms as Growth Snaps Back,” Wall Street

Journal, January 27, 2010.

Simulation The Beer Game

Session 4

Class Topics Inventory Management, Supply Chain Coordination

Readings
Textbook Chapters 19.1 and 19.2. (Supply Chain
Coordination)

“Bullwhip Hits Firms as Growth Snaps Back,” Wall Street

Journal, January 27, 2010.

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Case Due The Production Department at Privalia, Breakfast at the

Paramount

Session 5

Class Topics Inventory Management, Supply Chain Design

Readings Textbook Chapters

16.1, 16.2, 16.3, 16.6, 16.7 (Service Levels and Lead Times in
Supply Chains: The Order-up-to Inventory Model)
Chapter 15.3, 15.4. (Assemble-to-Order, Make-to-Order, and
Quick Response with Reactive Capacity)

Case Zara

Session 6

Class Topics Operations Strategy- Managing Operational Risks

Readings Schmidt et al. Identifying Risks and Mitigating

Disruptions in the Automotive Supply Chain
Cases Nissan Covid 19, Li&Fung sustainability

Simulation Global Supply Chain Simulation

Session 7

Class Topics Midterm

Global Supply Chain wrap up

Readings

Session 8

Class Topics Process improvement: Lean Operations

Readings The Goal

The Goal. Sections 1-31 (Pages 1-264)

Chapter 8: Lean Operations and the Toyota Production System

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Session 9

Class Topics Operations Strategy-Digital Transformation

Case Disney
Presentation/report Digital transformations

Articles are optional reads and will be distributed via Blackboard.

Case List:
1. “Walmart Inc. Takes on Amazon.com,” Harvard Business School case, January
2020.
2. “The Production Department at Privalia,” IESE case.
3. “Breakfast at the Paramount,” Harvard Business School case
4. “Zara: Staying Fast and Fresh”, UCLA case.
5. “Everything is Connected: A New era of sustainability at Li&Fung”, Stanford case
6. “Nissan’s response to the Covid 19 Pandemic”, Harvard Business School Case
7. “Disney and 21st Century Fox: Reshaping Disney’s Strategy for the Digital Age”,
INSEAD case

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